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A critical analysis of application in CRS, GDS and CMS, Managing Information System of Cathay Pacific, Hong Kong Free essay! Download now

Home > A Level > Business studies > A critical analysis of application in CRS, GDS and CMS, Managing Information System of Cathay Pacific, Hong Kong

A critical analysis of application in CRS, GDS and CMS, Managing Information System of Cathay Pacific, Hong Kong

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A critical analysis of application in CRS, GDS and CMS, Managing Information System of Cathay Pacific, Hong Kong


Current situation of tourism and airline industry
Tourism industry can be defined as the sector with lodging, food and beverage focus (Nykei, 2005; cited in Okumus, Altinay and Chathoth, 2010: 21). According to Bardi, Coyle and Novack (2006:15) have stated that the enhancement of infrastructure and growing number of transportation categories are the two major factors to advance the growth to the tourism sector. Therefore, these writers have emphasized that airline is a main transportation in the tourism sector. As Hanlon (2004) has also stated the importance of airline industry that it constitutes the world GDP and customer spending, MIS implementation is one of major factors in order to gain competitive advantage, understand the current situation of MIS is a vital tool which will be demonstrated as follow:
Meuter, Ostrom, Bitner and Roundtree (2003) has demonstrated IT can help the organizations to “improve efficiencies and provide functional benefits for customers”, as the database for the airline to contain bounds of information, and provide customized services to customers. As a global industry, tourism can be linked to a supplier community with “consumers, equally distributed worldwide” (Inkpen, 1999). Connolly and Olsen (2000, cited in Chathoth, 2007:405) explained that “customer’s needs and wants are the better management as IT-bases system is able to customize the products / service to a high degree”. With the application of technology, electronic services are banishing the interaction between the organization and customers (Meuter et al, 2003). Meuter et al (2003) agreed that technology is driving to globalization since the world is connected tightly together by the internet to practice the exchange of information.
As mentioned before, everything was changed currently; tourists can buy the e-tickets from the airline carriers or the travel agent with CRS platform, and check-in their flight through Internet or even through their mobile phone. Also they can use the self check-in system in the airport to reduce the time to wait for a queue. (Meuter et al, 2003)
Since lots of channels are distributing the information, the industry needs to provide more resources in the information management between the customers and agents. MIS as important role between each other; GDS is for sharing lots of information of flight, customer, and so on. CRS is for manage reservation, and CMS is similar to CRS, it can also use to departure control that they all are MIS systems (Sheldon, 1997).
Theory of CRS, GDS and CMS
Computer Reservation System (CRS) was the first application of computer technology to airline operations since 1950s (Sheldon, 1997), which has a linkage between the airline, travel agents, hotel users and the customers; which can perform hotel and airline reservation, ticket issuing, saving customer profile at the CRS platform (Meuter et al, 2000; Inkpen, 1999). However the airlines have to pay commission and technical cost to use these functions and exchange information.
And Customer Management System (CMS) is the system which used to manage the “reservation, inventory and departure control” within the airline industry (Buhalis and Egger, 2008), also assisting the CRS management in the industry (Sheldon, 1997), in order to increase the effective and efficient of the service provided.
Except CMS and CRS, Global Distribution System (GDS) also be one of the MIS which always applied in airline industry, it can define as “a network of one or more CRS for distributing products offers and functionalities of the participating network in different countries” (Sheldon, 1997), which means the tour operator, travel agent, the airline and the hotel user can review the information of other organizations through GDS, afterwards, if the customers want to make reservation, they can get through the CRS platform directly or through the travel agent to buy.

General Functions among CRS, GDS and CMS
In the airline industry, CRS and GDS also act as a “switch” between the suppliers and intermediaries on one side and travel agent on the other side, they also intend both system as wells as the companies operating these systems (Werthner and Klein, 1999). Such as 1) checking the flight schedule and availability, CRS will show flights schedule, and GDS will contains information the code, flight number, seats availability, which provided for the customers and travel agents to manage their flight probably. 2) Information and special request of the passengers will also be conducted in the database of CRS and GDS, in order to provide better customize service and increase competitiveness. 3) Fare quote and rules, CRS should listed its own fare information, but GDS should provide the fare information of all carries, for the customers and travel agents make the probable decision. 4) Ticketing, both CRS and GDS will “generate tickets and boarding passes on special printers in airline office or the public area”, the customer can save time on check-in procedure (Sheldon, 1997). However, this maintenance costs of the system are increasing nowadays, besides, the airlines also need to pay highly commissions to exchange information with travel agents (Werthner and Klein, 1999).
For CMS, it builds an open system technology and consists of three different modules that provide solution for reservation, inventory and departure control (Buhalis and Egger, 2008). Amadeus Altea is one of the most popular CMS world widely, it was launched by Amadeus since 1992, it has already used by around 20 airline of the world, which always has a positive feedback from the users (Airline World, 2007).
MIS in Cathay Pacific
In this report, the author would investigate on how Cathay Pacific manages their passenger’s information by different sources, including their reservation, check-in system, and transaction system.

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